Forex: XAU/USD likely to tumble

On Wednesday, the XAU/USD exchange rate dropped to the psychological level at the 1,278.00 mark. During today’s morning, the rate maintained south direction.

It is expected, that the price for gold could continue to decline. A potential downside target is the support level formed by the Fibonacci 38.20% retracement at 1,273.68.

From a technical point of view, it is unlikely, that gold could exceed the 1,279.58/1,282.75 range in the short term due to the resistance cluster formed by the 55-, 100– and 200-hour SMAs.